Broadly strong

US equity indexes closed moderately weak, sp -3pts at 2381. The two leaders - Trans/R2K, settled -0.5% and +0.2% respectively. VIX settled -3.6% at 11.21. Near term outlook offers chop into the quad-opex/weekly close. Another push upward into the sp'2400s is due, as broader price action is strong.


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VIX'daily3

Summary

It was a pretty subdued in equity land, with most indexes leaning moderately weak. It was notable that the Nasdaq comp' came within a single point of breaking a new historic high.

The VIX continues to reflect powerful underlying equity strength, and melted moderately lower to the low 11s. A weekly settlement in the 10s is easily within range.
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Something to stare at... at least for a few minutes..

UK, monthly

We're halfway through March, and the UK FTSE is net higher by a rather significant 2.1%, having broken a new historic high of 7444. Anyone doubt 9/10k as a minimum target before it all ends badly?

Goodnight from London
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Onward and upward

US equity indexes closed broadly higher, sp +19pts at 2384. The two leaders- Trans/R2K, settled higher by 1.1% and 1.5% respectively. VIX settled -5.4% at 11.63. Near term outlook offers a fair amount of chop into this Friday's quad-opex. Broadly, the sp'2500s are a valid target for late April/May.


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Summary

It was a rather bullish day for US equities. Price action was naturally somewhat muted ahead of the Fed, but once the annoucement was made, there was another burst upward. VIX even flash-printed to 10.60, as the uncertainty was lifted.
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As for today's rate hike...

Fed chair Yellen in a pretty confident mood

There is little to add from what I've said a thousand times across the last few years. Higher rates ARE bullish, not just for the US equity market... but the broader economy. For the moment, the outlook appears strong all the way into spring 2018.

I realise some of you don't want to hear that kind of talk, but I ain't going to placate you with deflationary/recessionary talk for the sake of keeping you as a reader. I'll keep calling it as I see it... as best I can.

Goodnight from London
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Awaiting a rate hike

US equity indexes closed moderately weak, sp -8pts at 2365. The two leaders - Trans/R2K, settled lower by -1.4% and -0.6% respectively. VIX settled +8.4% at 12.30. Near term outlook offers post FOMC upside. Ironically, the only downward pressure is coming from the petroleum market.


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VIX'daily3

Summary

US equities were clearly under pressure from further weakness in oil.

Just consider this for a moment though... whilst WTIC oil has fallen from the $55s to the $47s, equities are barely 2% from a recent historic high of sp'2400. What do the equity bears think is going to happen to equities when oil begins another up wave?
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A third rate hike

sp'500 and int' rates,

We should see the FOMC announce (2pm tomorrow) the first rate hike of the year, of 25bps to a new target range of 0.75-1.00%. This will make for the third hike since ZIRP concluded in Dec'2015.

I realise some of you still think higher rates are a bad thing.. and I can only suggest you go stare at the above chart for a few hours. Or perhaps...

Brewster doesn't want 24% interest on his $30 million

... go watch Brewster's Millions (1985), made during a time when the notion of interest rates around 1% would have sounded even more crazy than Monty not wanting interest on his cash mountain.

Goodnight from London
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